Production cost management truly reflects the cost of products through cost calculation and analysis, and strengthens cost management through cost control to achieve the purpose of reducing costs and improving economic benefits.

Production cost management is a necessary part of modern enterprise market competition. In order to reduce the production cost, it is important to adopt high-tech and upgrade equipment in production, in addition to adopting efficient management means to improve efficiency. Only when scientific and technological achievements are applied to production can they play their productive functions, create more economic benefits for enterprises and indirectly create more social benefits.

Production cost management principle [1]

Reducing the production cost is one of the necessary means to enhance the core competitiveness of modern manufacturing industry, but how to effectively and systematically reduce and control the cost is not a simple matter. Based on the latest mature theoretical research results and my work practice and experience, this paper holds that production cost management should follow the following three basic principles:

First of all, the principle of distinguishing standard cost centers from non-standard cost centers.

The essence of enterprise production cost management is first of all a performance management, that is, performance evaluation. According to the different responsibilities of managers, performance evaluation can be divided into cost center, profit center and investment center. A cost center is a unit in an enterprise, and its goal is to meet the lowest cost requirements. The profit center aims at net profit, and the investment center aims at investment return rate. As the cost center, the production department of an enterprise should divide the standard cost center and non-standard cost center, that is, expenses.

The standard cost center is the stable and clear responsibility center of the produced products, and the input required by the unit product is known. Usually, the typical representative of standard cost center is manufacturing factory, workshop, workshop section, team and so on. In manufacturing activities, each product can have clear quantitative standards and price standards for raw materials, labor and manufacturing costs. Therefore, the evaluation index of standard cost center is the standard cost under the condition of given product quality and quantity.

Non-standard cost centers, that is, cost centers, are usually used to manage those units whose output cannot be measured by financial instructions, or those units whose input and output are not closely related. These units include production management departments and senior management departments of enterprises. Usually, cost budget is used to evaluate the cost control performance of cost centers.

Second, the principle of combining cost difference investigation with cost difference correction.

Production cost management is not only performance management, but also behavior management. It not only needs to distinguish between standard cost centers and expense centers, but also needs to provide cost control reports. At the same time, effective cost management also needs to find out the reasons for the deviation through variance investigation and put forward measures to correct the deviation. The cost control report can only make people notice the performance of deviating from the target, and can only point out the clues of the problem. In order to get the actual effect of reducing costs, we can only take measures through investigation, find out the reasons and distinguish the responsibilities.

1, the reasons of the person subjected to execution, including fault, inexperience, low technical level, poor sense of responsibility, uncooperative, etc.

2. Unreasonable goals, including the initial goal is too high or too low, or the change of environment makes the goal no longer applicable.

3. There are problems in actual cost accounting, including errors in recording, processing and summarizing data, intentional fraud, etc. The cost index is very comprehensive, and no matter which production operation or management operation has problems, the cost will be out of control. Measures to correct deviation usually include:

1, re-establish indicators or modify indicators;

2. Take organizational measures to redistribute tasks or further clarify responsibilities;

3. Select and train competent personnel or replace competent personnel by means of personnel management;

4. Improve guidance and leadership, give more specific guidance to subordinates and implement more effective leadership.

Third, the principle of giving consideration to absolute cost control and relative cost control.

Production cost management must also break through the concept of "department", that is, production cost management is an integral part of the whole enterprise cost management. Production cost management should not only consider controlling absolute cost, but also consider reducing relative cost from the perspective of the development strategy of the whole enterprise.

Absolute cost control is usually called "cost control", and its principles can include the following four items:

1, economic principle.

It means that the cost incurred by implementing cost control should not exceed the income lost due to lack of control. Establishing a control requires a certain amount of manpower or material resources and a certain price. This price should not be too large, nor should it exceed the cost saved by establishing this control.

The principle of economics requires that cost control is feasible. Only by properly planning, organizing and leading the work to correct the deviation from the target can the cost control system be proved to be useful.

The principle of economics requires the implementation of the principle of "exception management" in cost control, so that normal costs and expenses can be simply controlled, and special attention should be paid to various exceptions. For example, major differences that deviate from the standard should be investigated, and approval procedures should be established for expenditures that exceed the budget.

The principle of economics requires that the cost control system should be flexible. In the face of changed plans and unforeseen circumstances, the control system can still play a role, so as not to become useless "decorations" when the market changes. 2. The principle of adjusting measures to local conditions means that the cost control system must be designed individually, which should be suitable for the actual situation of specific enterprises, departments, posts and cost projects, and cannot copy others' practices.

The characteristics suitable for a specific enterprise refer to the differences in management emphasis, organizational structure, management style, cost control methods and bonus forms between large enterprises and small enterprises, old enterprises and new enterprises, enterprises with rapid development and relatively stable development, enterprises in the same industry and enterprises in that industry at different development stages.

Meeting the requirements of a specific department means that the cost formation process of sales department, production department, technology development department, maintenance department and management department is different, and the methods of formulating control standards and implementing control should also be different. Meeting the requirements of post and post responsibility means that general manager, factory director, workshop director and team leader need different cost information. They should be provided with different cost control reports.

Characteristics applicable to cost items refer to detailed items such as material cost, labor cost, manufacturing cost, management cost and capital expenditure. Their properties and uses are different, and their control methods are also different.

3. The principle of full participation. Cost control is the common task of all employees, which can only be accomplished through the joint efforts of all employees. In order to arouse the enthusiasm of all employees for cost control, we need to pay attention to the following issues: (1) We need objective, accurate and applicable control standards. (2) Encourage employees to participate in the formulation of standards. (3) Let employees know the difficulties and actual situation of the enterprise. (4)

4. Leadership-driven principle. Because cost control involves all employees, and it is not a popular thing, it must be promoted by the top leaders. The requirements of cost control for enterprise leaders are: (1) Pay attention to and fully support cost control. (2) Have the determination and confidence to achieve the cost target. (3) Have the spirit of seeking truth from facts. (4) Set an example and strictly control your own responsibility cost ... Also known as "cost reduction", it refers to continuous efforts to reduce costs. The existence of competitors urges every enterprise to continuously reduce costs and constantly strive to improve performance.

The principles of reducing relative costs usually include:

1, customer-centric principle. We must plan the delivery time, quality and cost of products in a unified way. At the same time, we must make them faster, better and cheaper. We must reduce the cost without reducing the quality of our products. The reduction of product cost does not allow shoddy.

2. The principle of activity-based cost analysis. Reducing costs not only means reducing production costs, but also requires reducing the costs of other activities of enterprises, such as R&D, design, marketing, distribution and after-sales service. Reducing costs should not only reduce the costs of production and other activities, but also reduce management costs and financial costs. Cost reduction means not only reducing the cost of the enterprise itself, but also considering the costs of suppliers and customers.

3. Pay attention to the principle of product unit cost. Since the increase or decrease of total cost is related to the increase or decrease of capacity utilization rate, the real cost reduction refers to reducing the unit cost of products.

We should reduce the cost through our own efforts. Changes in market prices and tax cuts will also lead to cost reduction, but the fundamental way to reduce costs lies in the efforts of enterprises themselves to reduce costs.

5. Continuously reduce costs. Reducing costs should not be an expedient measure, but a fundamental policy of enterprises and should be carried out continuously.

Reducing relative cost means "doing the right thing", and controlling absolute cost means "doing the right thing". Under the condition of modern market economy, we must base ourselves on the external environment and overall development strategy of enterprises, and we must not only reduce relative costs, but also control absolute costs.

To sum up, using these three principles to organize the production cost management of modern manufacturing enterprises "macroscopically" is expected to form the "cost advantage" of enterprises and improve their core competitiveness.

Modern production management and low-cost management model innovation [2]

There are many modern production management technologies and models, and many countries have created their own management models by relying on the achievements of modern scientific and technological progress. For example, in the 1970s, Israel developed the Optimal Production Technology (OPC), which is based on foreign excellent management principles and software systems, aiming at improving the production and sales rate and reducing inventory and operation. China's "Han Steel Experience" promotes simulated market accounting. Implement a management mechanism with cost veto as the core. According to the sales price of products in the market and the market price of purchased raw materials, the target cost and profit target are calculated, the indexes of each process are compared and analyzed item by item, and their potential benefits are analyzed. According to the cost benefit, the performance of cadres is determined and assessed. The whole process of cost management is implemented from the factory director to the employees in the enterprise. It should be said that each different production management mode has its scope of application. Each has its advantages and disadvantages. El-based management philosophy represented by Jrr is an advanced management thought based on China's natural resources and national conditions. The western management philosophy represented by MR makes more use of computer-aided management and information integration technology, which breaks through the limitation of time and space in management and creates a brand-new management idea. However, by comparing these different management methods, we can find that low-cost management occupies R.

(1) Low-cost Management in JIT (Jrr) Mode

Just In lime is a production management mode initiated by El Benfengtuan Automobile Company in 1970s. It adopts Kanban system and backward water pulling mode to pursue zero inventory. It ensures that finished products can be produced and delivered on time, parts can be sent to people for assembly on time, parts can be put into assembly on time, and materials can be converted into parts on time. Just-in-time production system breaks the traditional pyramid hierarchical management mode and integrates product development, production and sales.

Achieved the goal of zero inventory cost. The working principle of Jrr is to supply the required parts to each process in time according to the required quantity (kanban set quantity). Kanban is the carrier of transmitting production information and the instruction of production and transfer, which is expressed by cards, labels or work tickets. It displays the kanban number, product number, piece number and last operation number. Delivery time, etc. From the last working procedure of production to the last working procedure, the information is collected by kanban in turn, and only the same number of parts are produced in the last working procedure and taken away by the next working procedure, thus realizing zero inventory. Zero inventory not only solves the occupation problem of related funds, but also greatly saves the procedures of warehousing, storage, delivery, confirmation and pricing of raw materials. At the same time, the enterprise has achieved zero inventory. The product cost is not affected by the carry-over of the initial inventory cost, and becomes a non-cumulative cost, so that enterprises do not have to consider the factors of the initial inventory cost and the final inventory cost when calculating the current product cost, which can not only greatly simplify the calculation of product cost, but also help to correctly evaluate the quality and operating performance of enterprises in current production and operation, and reduce the production cost and material cost. Jrr adopts a pull system in production mode, that is, only the needed materials are manufactured to replace the just used materials. Whenever a container is removed, a production card is issued to the source work center, and another batch is produced to fill the container. The whole system has short production cycle, balanced output, standard tooling, production mode assembly line and preventive equipment maintenance.

This ensures the stability and continuity of R production process, shortens the mold changing time and adjusts the utilization rate of L resources. By increasing the production capacity, the imbalance in production can be eliminated and the bottleneck phenomenon in the production process can be reduced. It completely abandons the traditional economic batch mode, reduces the capital occupation of WIP and saves the material cost. In addition, Jrr requires that parts with quality problems cannot be transferred to the next process, thus eliminating unqualified products in the bud and reducing the loss of repair rate and waste products. The attribution of cost is helpful to management and business decision. In traditional cost management, depreciation expenses and wages of auxiliary workers are regarded as indirect costs, so the management allocates indirect costs to unit products and makes business decisions according to output. Jrr is not conducive to the cost evaluation of new and old products, and emphasizes the organization of production by manufacturing units. Because all the production processes of one or a group of similar parts and products are completed in one manufacturing unit, the cost in this unit becomes the direct cost of the products produced by this unit, which is helpful for managers to analyze and make decisions on the product cost.

(2) Low cost management under the mode of manufacturing resource planning.

Manufacturing resource planning (Plsnning) is an advanced management model developed in the early 1980s in the United States. It uses computer and software technology to effectively plan, manage and control the manufacturing resources of enterprises. Starting from manufacturing resources, it considers the strategic level of business decision-making, the tactical level of short-term and medium-term production planning, and the operational level of workshop operation planning and production activity control. Its functions cover activities such as market sales, material supply, production planning and control at all levels, financial management, cost, inventory and technical management. It has become a powerful tool for enterprise management. According to the investigation of American specialized institutions, the application of MRPII can increase the productivity 10%- 15% and reduce the inventory cost by 20%-30%.

The control of production cost has been strengthened: the traditional production cost control is a typical form of post-event cost accounting. Only the costs incurred in the production process are accumulated according to standard (planned) costs or actual costs, and some even have no standard costs. This cost conclusion based on past accounting events is actually a historical cost, which does not help to evaluate the level of production efficiency. It is also impossible to control the cost in the production process in real time. At the same time, it is not conducive to the formulation of prices. MRPII effectively solved this problem and established a cost center. The cost calculation subsystem calculates the cost according to the product structure, work center, working procedure, procurement and other information. , including the calculation of labor cost, material cost and production cost. Materials, labor and expenses are calculated separately, and indirect expenses are paid in advance according to a certain coefficient. Estimate the standard (planned) cost in advance, compare, analyze and dynamically monitor the actual cost at any time, and try to control it in advance. Once it is found that there is a big difference between the standard and the actual cost, it can be traced up and down quickly, and it is easy to find out where and when there is a problem at a glance, which is convenient for improvement and control.

Optimizing inventory management: MRPII theory holds that a certain amount of necessary inventory is a protective measure and an important factor to maintain production stability. This view is just the opposite of "zero inventory" in JIT theory, but these two views are not contradictory because their application environments are different. JIT system is suitable for standard products with few varieties, repeated production and mass production. It has high requirements for internal management, personnel, technology and external environment. MRP-II is oriented to the continuous manufacturing industry, and the inventory assets generally account for 65,438+05%-40% of the total assets of enterprises. The basic principle of inventory management is to calculate the time and quantity of various raw materials from the master plan of the final product, and divide the demand into independent demand and subordinate demand. Independent demand, such as product inventory. Its demand depends on the external environment (the market and customers can only be estimated by forecasting). Related requirements such as raw materials and purchased parts depend on the production plan of the final product. Then, after the independent demand is determined, we can deduce the dependent demand in the computer according to the product structure table, thus providing accurate material demand time and quantity. In MRPII system, the functions of inventory control include: establishing inventory files, ABC classification of materials, daily inventory update and collection.

Greatly reduce labor costs and management costs: MRPII requires extensive application of computer technology and automation equipment in all aspects of enterprise production and operation, thus greatly saving labor costs. For example, it takes 6- 13 weeks to calculate the material requirements by the traditional method, which is time-consuming and laborious. After using MRPII system software, the time for calculating material requirements is shortened to 1-2 days. In management, it can be * * *, the information transmission is fast, the accuracy is improved, the management efficiency can be improved, and the division of labor among functional departments is more clear. At the same time, the management department has mastered very useful information from R&D, raw material management and production to sales planning and promotion, which can only be completed through computer information integration.

(3) Computer Integrated Manufacturing System (CJMS) and low-cost decision-making.

Computer integration SEIN was put forward by Americans in 1970s. It mainly uses computer technology in the whole process of product development, manufacturing and operation, and integrates computer unit technology to give full play to its overall advantages. A management mode to improve the quick response ability of enterprises to the market usually consists of four functional subsystems: management information system (MIS), product design and process design automation system (CAD, CAPP), manufacturing automation system (DNC, FNSC) and quality assurance system (CAQ), and two supporting subsystems: computer network system and database system.

Reduce the design cost. It directly analyzes the parameters and structure of products by computer, and automatically draws drawings according to national standards, specifications and calculation data, which greatly shortens the product design cycle, and can choose a variety of schemes for product design, and can realize the design of complex products and small batch products.

Problems and countermeasures in production cost management [3]

1. The concept attaches importance to output production and ignores the establishment of workshop cost responsibility control system.

Managers of some production enterprises believe that only by increasing the number of products can enterprises have the basic conditions for increasing wealth. Moreover, when the market is smooth and there is demand for products, this concept is even stronger. In terms of workshop cost management, there is no clear cost responsibility control system in the workshop. Some enterprises only carry out first-level accounting, the workshop has not established a cost responsibility center, has not formulated cost-related assessment indicators, and lacks bottom-up daily cost control means. This has laid a hidden danger for cost management. In actual production, in order to ensure the normal production and the stable growth of product output, enterprises often lack scientific control of input, which leads to lax material acquisition review, frequent replacement of spare parts, increased materials and material consumption, resulting in increased output and higher costs. Once the market situation changes, it will lead to serious consequences of prolificacy.

2. In terms of methods, it lacks scientific management and cannot play an effective control role.

The seven functions of modern cost accounting, namely, cost forecasting, cost planning, cost decision-making, cost forecasting, cost control, cost analysis and cost assessment, are closely related and indispensable. Cost forecasting is the premise of cost decision-making, cost planning is the basis of cost decision-making, cost control is the guarantee to achieve the set goals of cost decision-making, and cost analysis and cost assessment are effective means to achieve the goals of cost decision-making. But in fact, it is often the case. Lack of process control and post-evaluation of production costs. Even after the event, there are no corresponding measures to adjust and control the problem in time, so it still cannot meet the current cost management requirements.

3. Personnel composition, lack of professional cost management team.

For a long time, some enterprises have always believed that strengthening enterprise cost management and improving enterprise economic benefits are the business of enterprise leaders and financial departments, and have nothing to do with other departments and other personnel. Actually, this is a one-sided understanding. Because business leaders are in a dominant position in cost management, they are not direct operators and cannot do it themselves. Moreover, although the role of financial department in cost management can not be ignored, its responsibility is mainly to combine the actual situation of enterprises. Familiar with the production process, improve the internal accounting control of enterprises, and choose the production cost accounting method suitable for enterprises, which has professional limitations. Therefore, in order to fundamentally reduce the cost and make progress in the improvement of production technology, the selection of substitutes, the reasonable arrangement of production organization and the renewal of equipment, professionals must participate in the selection, so as to choose a high-yield, high-quality and low-consumption scheme. From the point of view of cost accounting of financial department, no matter how to choose quota method, standard cost method or other methods, it is necessary for production personnel to determine quota consumption according to production consumption and process conditions, and to prepare norm cost according to established prices. Therefore, without the active participation of professional cost management team and production personnel, reducing costs is just empty talk.

4. In terms of means, the cost accounting method is backward and can't meet the requirements of the development of modern situation.

First of all, cost accounting can't meet the requirements of modern enterprise development. Accountants still stay in reimbursement accounting, and have not established the idea of participating in cost management. Some enterprises are closed to the outside world, do not learn advanced cost accounting methods, and do not communicate with the same industry. The cost accounting method is backward and the information is seriously lagging behind, which can not meet the requirements of nip in the bud, so it can not meet the needs of modern enterprise management, which is very unfavorable to cost management.

Secondly, the development of IT industry provides a better platform for enterprise production cost management, and also provides conditions for timely and accurate cost prediction, decision-making and accounting, effective cost control and comprehensive cost evaluation and analysis. However, it has not been fully utilized in most enterprises. For example, enterprises have not made a comprehensive consideration of the hardware facilities, but each department has its own methods. The consequence of this is to buy only the software that meets the needs of its own department. Third, the financial software only meets the requirements of financial accounting, and cannot fully reflect the cost management information, thus restricting the innovation of cost management.

Suggestions on Problems in Cost Management

1. Establish the awareness of cost management of all staff and implement the cost responsibility system.

First of all, while taking economic benefits as the primary goal of enterprise management, enterprise leaders must establish the consciousness of total cost management, so that all departments and workshops attach importance to production costs and give full play to the subjective initiative of each employee. At the same time, enterprises should take the consciousness of cost control as a part of the enterprise and culture, penetrate into the minds of every employee, form the democratic and independent management consciousness of employees within the enterprise, and create as much value as possible with as little investment as possible.

Secondly, the production workshop implements the cost responsibility system. In modern enterprise management, the system of maintaining enterprises with ideals and beliefs has obviously failed to meet the requirements of today's enterprise development. In the market economy environment, we should establish an effective internal coordination and control mechanism, combine responsibility, right and benefit, fully mobilize the enthusiasm of management departments at all levels, and make them consciously work hard to achieve the overall goal of the enterprise. Responsibility accounting is completely suitable for all enterprises and fully meets the needs of cost management. Its basic work includes establishing responsibility center, compiling responsibility budget, implementing responsibility monitoring and performance evaluation. Its basic types include cost center, profit center and investment center, and its main characteristics are decentralized management, step-by-step authorization and step-by-step responsibility. Responsibility accounting emphasizes stimulating people's internal enthusiasm and clarifying the scope of responsibility, so that all production departments are always consistent with the overall goal of the enterprise. Carrying out responsibility accounting and implementing responsibility cost system in the workshop is an effective means to implement cost management.

2. Establish a cost management system according to the management function of Chengfeng.

According to the seven functions of modern cost accounting, a strict and scientific cost management system is established.

① Cost forecast.

Cost prediction is to predict the future cost level and change trend of an enterprise by using quantitative and qualitative analysis and causal analysis according to its current operating conditions and development goals.

② Cost planning.

The cost plan is used to reflect the production consumption during the planning period, which is divided into comparable product cost plan, incomparable product cost plan and workshop cost plan.

③ Cost decision.

Cost decision-making is a process of drawing up various feasible cost reduction schemes on the basis of cost planning or established goals, and selecting the scheme with the best economic and social benefits through analysis and calculation of each scheme, and optimizing the target cost, for example, making reasonable production cost decisions and cost saving decisions.

④ Cost budget.

Cost budget is the way and method to ensure that the optimal scheme determined by cost decision can be implemented in practice. Its budget content is divided into direct material budget, direct labor budget, manufacturing cost budget and so on. At the same time, the cost budget must be combined with the responsibility cost, and the cost budget indicators should be decomposed layer by layer.

⑤ Cost control.

Cost control is to control the production activities of an enterprise in order to achieve the business objectives of the enterprise, that is, to manage the various expenses and various factors affecting the cost in the production and business activities of the enterprise, find out the gap between them and the target cost, and take corresponding measures to adjust and intervene in time to ensure the realization of the cost objectives. According to the different control periods, cost control can be divided into pre-control and daily control.

⑥ Cost analysis.

Cost analysis means to reveal the composition of the difference between the actual cost and the standard cost by analyzing the nature, causes and effects, and take corresponding measures according to the specific situation to correct the deviation in time.

⑦ Cost evaluation. The purpose of cost assessment is to clarify the responsibility, so as to ensure the smooth completion of the cost plan. Different assessment indicators can be formulated according to each workshop and department, and the assessment can be conducted on schedule.

3. Reform the employment mechanism and establish a professional cost management team.

In order to reduce the cost fundamentally, a professional cost management team must be established, and each production workshop should be equipped with cost engineers. Cost engineers can choose from production technicians who are proficient in production technology, master production characteristics and understand equipment performance, or from key positions or control points in the production workshop. At the same time, let cost engineers participate in enterprise cost management, play their key role in reducing production consumption and tapping enterprise potential, and ensure that cost information is true, timely and complete, thus truly reducing cost consumption.

4. Improve the level of cost accounting and speed up network construction.

In order to adapt to the changes in the international and domestic market environment and the production environment of enterprises, cost accountants must learn from all advanced cost management experiences at home and abroad and study hard in accordance with the principle of "taking me as the mainstay, learning from others' strengths, mastering everything and being unique". China enterprises have accumulated a lot of effective cost accounting experience in long-term practice, such as centralized and hierarchical management of cost indicators, economic responsibility system in factories including teams and groups, etc. And the experience of "simulating market accounting and implementing cost veto" in standard cost management of Handan Iron and Steel and Baosteel is worth learning and learning from. Select the accounting method suitable for enterprises, gradually change from accounting type to management type, and provide information in line with cost management.

While improving the level of cost management, we should also speed up the network construction of enterprises. We must integrate all the subsystems of the enterprise into the overall management information system of the enterprise to form an internal LAN. Through information sharing, we can master the production and operation situation, realize real-time cost tracking and control, find and solve cost management problems in time, promote the development of accounting computerization, and improve the level of real-time computer management, thus providing reliable technical support for cost management. Satisfaction plus points, writing this is exhausting.